(This article by Philip Green and George Gabor first appeared as a special to the Financial Post on August 16 2012). The Obama administration is considering adopting the “chained consumer price index,” as the principal measure of inflation upon which increases in payments to such things as Social Security would be tied. The Chained-CPI is [...]
The Economist magazine is taking a jab at another sort of inflation. Women’s pant sizes, while nominally the same, have actually been increasing in girth. The British new magazine estimates that an average size 14 pair of women’s pants “is now more than four inches wider at the waist than it was in the 1970s.” [...]
About 200 years ago Joseph Lowe said that “the interest of government, the greatest of all debtors, [is] to prevent the public from fixing its attention on the gradual depreciation of money.” It seems like the Argentinian government is doing its best to prove Lowe right. Recent reports (see here and here) suggest the Argentinian [...]
Official inflation numbers are very low and do not correspond with the reality people face when they shop. The US Bureau of Labour Statistics reports inflation at 1.1%. This post shows year-over-year increases for basic staples such as wheat (74%) beef (18%) and coffee (27%). I have been occasionally recording food prices to do my [...]
The Fed is afraid if deflation. Investors fear inflation. And there are suspicions about how inflation is measured.